Annual financial statement
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SciDev Limited ABN 25 001 150 849 Appendix 4E - Preliminary Final Report - 30 June 2026
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SciDev Limited Appendix 4E Preliminary final report 1 1. Company details Name of entity: SciDev Limited ABN: 25 001 150 849 Reporting period: For the year ended 30 June 2026 Previous period: For the year ended 30 June 2025 2. Results for announcement to the market 2026 2025 Change Change $'000 $'000 $'000 % Revenues from ordinary activities 85,530 103,386 (17,856) (17%) Loss from ordinary activities after tax attributable to the owners of SciDev Limited (5,767) (878) (4,889) 557% Loss for the year attributable to the owners of SciDev Limited (5,767) (878) (4,889) 557% 2026 2025 Cents Cents Basic earnings per share (3.0) (0.5) Diluted earnings per share (3.0) (0.5) Dividends There were no dividends paid, recommended or declared during the current financial period. Comments Refer to the attached Commentary on results for further information regarding the Group’s financial performance and results for the year ended 30 June 2026. 3. Net tangible assets Reporting period Previous period Cents Cents Net tangible assets per ordinary security 11.56 13.31 4. Control gained over entities Not applicable. 5. Loss of control over entities Not applicable. 6. Dividends Current period There were no dividends paid, recommended or declared during the current financial period.
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SciDev Limited Appendix 4E Preliminary final report 2 Previous period There were no dividends paid, recommended or declared during the previous financial period. 7. Dividend reinvestment plans Not applicable. 8. Details of associates and joint venture entities SciDev holds a 50% interest in Nuoer SciDev JV Pte. Ltd., a Singapore incorporated joint venture established with Nuoer New Material Pte. Ltd. 9. Foreign entities Details of origin of accounting standards used in compiling the report: Not applicable. 10. Audit statement This report is based on accounts which are in the process of being audited. The Company expects the independent auditor’s report to be unmodified and not contain an emphasis of matter. 11. Attachments Additional information supporting this Appendix 4E is attached.
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SciDev Limited Commentary on results 30 June 2026 3 Operating and financial review The loss for the Group after providing for income tax amounted to $5,767,000 (30 June 2025: $878,000). In FY2026, the Group delivered revenue of $85,530,000, representing a 17% decrease on the FY2025. The business delivered $3,602,000 of Underlying EBITDA (2025: $7,130,000) and positive operating cash flow for the year of $3,607,000 (2025: $2,866,000). SciDev maintained a robust balance sheet with cash and cash equivalents of $8,565,000 on 30 June 2026 and a further $5,923,000 in inventory. Reconciliation of profit before income tax to EBITDA and Underlying EBITDA (unaudited): 2026 2025 $'000 $'000 (Loss)/profit before income tax (5,819) 1,456 Depreciation and amortisation 4,213 4,168 Finance costs 506 568 EBITDA (1,100) 6,192 Significant items Impairment of intangible assets 2,845 - Restructuring including redundancies 1,030 - ISO asset rectification 637 - UK subsidiary wind-down costs 190 - Transaction costs including due diligence - 938 Underlying EBITDA 3,602 7,130 EBITDA and Underlying EBITDA are non-IFRS earnings measures which do not have any standardised meaning prescribed by IFRS and therefore may not be comparable to EBITDA presented by other companies. These measures, which are unaudited, are important to management as an additional way to evaluate the Group's performance. Underlying EBITDA excludes the effects of significant items of income and expenditure which may have an impact on the quality of earnings because of isolated or non-recurring events. Review of operations FY26 was characterised by a challenging first half followed by a strong second-half recovery. A sharp first-half earnings decline, driven by the loss of a major Energy Services contract and continued losses in the International Water Technologies business, was followed by a strong second-half recovery. Four initiatives underpinned the recovery: the exit of loss-making International Water Technologies operations, broad cost reductions, lower capital expenditure, and tighter working capital management. Together these programs reduced the Group's cost base significantly relative to FY2025, with the benefits increasingly evident through the second half. Underlying EBITDA rose to $2,516,000 in 2H FY2026 from $1,086,000 in 1H, despite lower second-half revenue, while the net cash balance (cash and cash equivalents less bank loans) rebuilt to a comfortably strong $6,752,000 at year end. The year also marked a strategic evolution for the Group. In June 2026, SciDev presented a refocused strategy built around an integrated water solutions platform spanning engineering, chemistry and data, targeting the markets where the Company has a genuine right to win: Mining, Data Centres and Energy. SciDev enters FY2027 with a stronger balance sheet, a leaner cost base, and a growing pipeline across these markets, including the Company's first Data Centre engagements and the recently announced Newmont Boddington contract.
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SciDev Limited Commentary on results 30 June 2026 4 Financial Review Group revenue for FY2026 was $85,530,000, down 17% on FY2025 ($103,386,000), with gross margin of 26% (FY2025: 28%). Underlying EBITDA of $3,602,000 was $3,528,000 lower than FY2025, with the entire variance explained by two factors: the loss of the Energy Services xSlik® friction reducer contract and continued losses in the international Water Technologies business. These headwinds were partially offset by record earnings from Water Solutions, up $3,626,000 to $4,192,000 underlying EBITDA, and a 33% reduction in corporate costs, contributing a further $1,584,000 of underlying EBITDA benefit. Net cash, comprising cash and cash equivalents less bank loans, was $6,752,000 at 30 June 2026, up from $6,343,000 a year earlier, reflecting positive second-half operating cash flow, Rum Jungle milestone receipts, and the reversal of the working capital build recorded in 1H FY2026. Total available liquidity was $13,752,000, comprising net cash of $6,752,000 and $7,000,000 of unutilised debt facilities, providing ample headroom for ongoing operations and near-term organic growth. Recurring revenue rose to 38% of the total, up from 30% in FY2025, reflecting the Group's continued shift toward higher-quality, repeatable revenue streams. Water Solutions Water Solutions delivered a record result in FY2026, with combined revenue up 12% to $48,282,000 and underlying EBITDA of $4,192,000, an improvement from a $566,000 underlying EBITDA in FY2025. This excludes the International Water Technologies operations. Process Chemistry Process Chemistry revenue grew 5% to $27,308,000, driven by large-scale tunnelling infrastructure projects and multi-year contract renewals in the mining sector. Underlying EBITDA increased 65% to $2,211,000, reflecting higher revenue and an improved gross margin mix from a number of shorter-duration, higher-margin infrastructure projects. Water Technologies Water Technologies (APAC) revenue increased 27% to $20,974,000, underpinned by a strengthening baseline of mining and infrastructure contracts together with the Rum Jungle groundwater treatment plant construction contract, approximately 50% of which was completed during FY2026. Underlying EBITDA improved to $1,981,000, from a loss of $776,000 in FY2025, driven by progress on Rum Jungle and continued attention to cost control. During the year, the Group recognised an impairment expense of $2,845,000 against intangible assets arising from the 2021 acquisition of Haldon Industries. The impairment comprised the remaining carrying values of customer contracts ($922,000) and trademarks and intellectual property ($1,923,000). Strategic developments ● Renewed strategic focus on building an integrated water solutions platform, combining Water Technologies engineering capability with Process Chemistry's advanced chemistry, and leveraging the data and optimisation tools of both businesses (Hydra-IQ and OptiFlox®). ● Alignment of the business around Mining, Infrastructure and Data Centres as core right-to-win markets. ● Established an initial position in the Data Centre market, drawing on existing water treatment capability and the team's prior experience delivering more than 40 water projects for data centre clients in Europe. Energy Services Energy Services revenue was $36,622,000, down 39% on FY2025, largely reflecting the loss of a key contract for premium xSlik® friction reducer, which accounted for the significant majority of the revenue decline. Sales of the flagship CatChek® product were comparatively resilient despite broader industry pressure, rising to 51% of total revenue in FY2026, up from 41% in FY2025. Underlying EBITDA of $4,761,000 was down 64% on FY2025, largely due to the loss of higher-margin xSlik® volumes. The result was further impacted by intensified competition in commodity-grade friction reducer chemistry, against a backdrop of weak US oilfield services activity and declining frac spread counts for much of the year. Strategic developments ● Continued expansion in the Permian Basin, with emerging opportunities identified in the Beetaloo Basin, Australia. ● Signed a Master Services Agreement and generated first revenues with a tier-one oilfield services provider. ● Advanced new product development across Enhanced Oil Recovery (EnFlow), Completion (CatChek® variants) and Advanced Delivery Systems (high-suspension slurries).
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SciDev Limited Commentary on results 30 June 2026 5 Water Technologies – International Revenue from the International Water Technologies business was not meaningful at $532,000, with an underlying EBITDA loss of $2,137,000 as market activity failed to develop as quickly as forecast. Following a strategic review, the Company made the decision to exit its US and UK direct operations and transition to a channel partner sales model, preserving long- term market access without an ongoing fixed cost base. The closure of operations was completed in the second half of FY2026, removing a cost base that had produced an EBITDA loss of $1,506,000 in the first half alone. Corporate Corporate costs reduced by 33% to an underlying EBITDA loss of $3,214,000, achieved through meaningful reductions in headcount and administration costs, and consistent with the cost and capital discipline framework presented at the Company's June 2026 Investor Day.
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SciDev Limited Consolidated statement of profit or loss and other comprehensive income For the year ended 30 June 2026 Note 2026 2025 $'000 $'000 The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 6 Revenue 3 85,530 103,386 Other income 158 117 Expenses Changes in inventories, and raw materials and consumables used (58,197) (68,842) Contractors and consultants (1,434) (1,275) Depreciation and amortisation expense (4,213) (4,168) Employee benefits expense (16,939) (18,042) Employee related expenses (1,076) (855) Impairment of intangible assets 8 (2,845) - Insurance (965) (1,004) Transaction costs including due diligence - (938) Professional fees (588) (1,021) Travel and accommodation (1,291) (1,543) Other expenses (3,453) (3,791) Finance costs (506) (568) (Loss)/profit before income tax benefit/(expense) (5,819) 1,456 Income tax benefit/(expense) 52 (2,334) Loss after income tax benefit/(expense) for the year attributable to the owners of SciDev Limited (5,767) (878) Other comprehensive income Items that will not be reclassified subsequently to profit or loss Losses on the revaluation of equity instruments at fair value through other comprehensive income, net of tax (149) (55) Items that may be reclassified subsequently to profit or loss Foreign currency translation (934) 261 Other comprehensive income for the year, net of tax (1,083) 206 Total comprehensive income for the year attributable to the owners of SciDev Limited (6,850) (672) Cents Cents Basic earnings per share (3.0) (0.5) Diluted earnings per share (3.0) (0.5)
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SciDev Limited Consolidated statement of financial position As at 30 June 2026 Note 2026 2025 $'000 $'000 The above consolidated statement of financial position should be read in conjunction with the accompanying notes 7 Assets Current assets Cash and cash equivalents 4 8,565 9,683 Trade and other receivables 5 12,045 15,000 Contract assets 297 635 Inventories 6 5,923 7,417 Income tax refund due - 79 Other 1,296 1,009 Total current assets 28,126 33,823 Non-current assets Contract assets 56 134 Financial assets at fair value through other comprehensive income 248 397 Property, plant and equipment 7 7,929 11,275 Intangibles 8 20,983 24,740 Deferred tax 3,372 4,135 Other 1,074 722 Total non-current assets 33,662 41,403 Total assets 61,788 75,226 Liabilities Current liabilities Trade and other payables 9 12,498 18,062 Contract liabilities 2,258 208 Interest bearing liabilities 527 1,527 Lease liabilities 739 1,309 Income tax 7 - Employee benefits 524 644 Total current liabilities 16,553 21,750 Non-current liabilities Interest bearing liabilities 1,286 1,813 Lease liabilities 999 1,613 Total non-current liabilities 2,285 3,426 Total liabilities 18,838 25,176 Net assets 42,950 50,050 Equity Issued capital 10 119,606 119,606 Reserves (1,931) (183) Accumulated losses (74,725) (69,373) Total equity 42,950 50,050
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SciDev Limited Consolidated statement of changes in equity For the year ended 30 June 2026 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 8 Issued Accumulated capital Reserves losses Total equity $'000 $'000 $'000 $'000 Balance at 1 July 2024 119,489 (757) (68,495) 50,237 Loss after income tax expense for the year - - (878) (878) Other comprehensive income for the year, net of tax - 206 - 206 Total comprehensive income for the year - 206 (878) (672) Contributions of equity, net of transaction costs (note 10) 117 - - 117 Share based payments - 368 - 368 Balance at 30 June 2025 119,606 (183) (69,373) 50,050 Issued Accumulated capital Reserves losses Total equity $'000 $'000 $'000 $'000 Balance at 1 July 2025 119,606 (183) (69,373) 50,050 Loss after income tax benefit for the year - - (5,767) (5,767) Other comprehensive income for the year, net of tax - (1,083) - (1,083) Total comprehensive income for the year - (1,083) (5,767) (6,850) Share-based payments recognised during the year - 63 - 63 Reversal of share-based payments on forfeiture - (313) - (313) Transfer from reserves to accumulated losses - (415) 415 - Balance at 30 June 2026 119,606 (1,931) (74,725) 42,950
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SciDev Limited Consolidated statement of cash flows For the year ended 30 June 2026 Note 2026 2025 $'000 $'000 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 9 Cash flows from operating activities Receipts from customers (inclusive of GST) 96,293 104,221 Payments to suppliers and employees (inclusive of GST) (93,160) (97,895) 3,133 6,326 Interest received 168 59 Interest and other finance costs paid (601) (509) Income taxes refunded/(paid) 907 (3,010) Net cash from operating activities 3,607 2,866 Cash flows from investing activities Loan to joint venture (119) (152) Payments for property, plant and equipment 7 (567) (2,081) Payments for intangibles 8 (25) (40) Payments for security deposits (687) (151) Proceeds from release of security deposits (158) - Proceeds from disposal of property, plant and equipment 137 78 Net cash used in investing activities (1,419) (2,346) Cash flows from financing activities Proceeds from bank loans - 3,000 Repayment of bank loans (600) (500) Net repayment of/(proceeds from) revolving bank loan (1,000) 1,000 Transaction costs related to bank loans - (219) Principal elements of lease payments (1,353) (1,292) Repayment of related party loans - (2,379) Net cash used in financing activities (2,953) (390) Net (decrease)/increase in cash and cash equivalents (765) 130 Cash and cash equivalents at the beginning of the financial year 9,683 9,425 Effects of exchange rate changes on cash and cash equivalents (353) 128 Cash and cash equivalents at the end of the financial year 4 8,565 9,683
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 10 Note 1. Statement of significant accounting policies Statement of compliance This preliminary final report (the Report) is to be read in conjunction with any public announcements made by SciDev Limited during the reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 and Australian Securities Exchange Listing Rules. The preliminary final report has been prepared in accordance with Australian Accounting Standards (AASBs) adopted by the Australian Accounting Standards Board and the Corporations Act 2001. The Report is presented in Australian dollars, which is the functional currency of SciDev Limited and its controlled entities and has been prepared on the basis of historical cost except in accordance with relevant accounting policies where assets and liabilities are stated at their fair values. Note 2. Operating segments Identification of reportable operating segments During the year, the Group revised the presentation of its operating segments. The segment previously reported as Chemical Services, which combined the Energy Services and Process Chemistry businesses, has been split. Energy Services now stands alone as a segment, while Process Chemistry has been integrated with Water Technologies to form the new Water Solutions segment. In addition, the Group revised its allocation of corporate costs, with costs previously allocated to operating segments now presented within the Corporate segment. Comparative segment information has been restated on a consistent basis, separately presenting amounts that were previously combined across more than one segment. Operating and business segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing the performance of the operating segments, has been identified as the Board of Directors. Types of products and services The principal products and services of each of these operating segments are as follows: Energy Services Develop, manufacture and supply specialty oilfield and production chemistries and performance solutions that improve operational efficiencies, reduce waste and minimise water consumption across the energy industry. Water Solutions Specialised water treatment and remediation technologies, together with process chemistries for the mining and construction industries, that remove harmful contaminants from groundwater, surface water and industrial liquid waste to improve operational efficiencies and allowing water to be recycled or safely discharged to the environment. Corporate Includes Head Office and Group services
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Operating segments (continued) 11 Energy Water Eliminations and Services Solutions Corporate adjustments Total 2026 $'000 $'000 $'000 $'000 $'000 Revenue Sales to external clients 36,611 48,770 - - 85,381 Intersegment sales 11 44 - (55) - Total sales revenue 36,622 48,814 - (55) 85,381 Other revenue - - 149 - 149 Total revenue 36,622 48,814 149 (55) 85,530 Underlying EBITDA* 4,761 2,055 (3,214) - 3,602 Depreciation and amortisation (4,213) Finance costs (506) Restructuring including redundancies (1,030) ISO asset rectification (637) UK subsidiary wind-down costs (190) Impairment of intangible assets (2,845) Loss before income tax benefit (5,819) Income tax benefit 52 Loss after income tax benefit (5,767) Material items include: Changes in inventories, and raw materials and consumables used 25,569 32,683 - (55) 58,197 Assets Segment assets 18,463 36,181 7,144 - 61,788 Total assets 61,788 Liabilities Segment liabilities 3,686 12,295 2,857 - 18,838 Total liabilities 18,838 * Underlying EBITDA is a non-IFRS measure and excludes the effects of significant items of expenditure which may have an impact on the quality of earnings because of isolated or non-recurring events.
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 Note 2. Operating segments (continued) 12 Energy Water Eliminations and Services Solutions Corporate adjustments Total 2025 $'000 $'000 $'000 $'000 $'000 Revenue Sales to external clients 60,243 42,987 - - 103,230 Intersegment sales 12 22 - (34) - Total sales revenue 60,255 43,009 - (34) 103,230 Other revenue - - 156 - 156 Total revenue 60,255 43,009 156 (34) 103,386 Underlying EBITDA* 13,337 (1,410) (4,797) - 7,130 Depreciation and amortisation (4,168) Finance costs (568) Transaction costs including due diligence (938) Profit before income tax expense 1,456 Income tax expense (2,334) Loss after income tax expense (878) Material items include: Changes in inventories, and raw materials and consumables used 39,215 29,661 - (34) 68,842 Assets Segment assets 30,778 34,922 9,526 - 75,226 Total assets 75,226 Liabilities Segment liabilities 12,353 7,308 5,515 - 25,176 Total liabilities 25,176 * Underlying EBITDA is a non-IFRS measure and excludes the effects of significant items of expenditure which may have an impact on the quality of earnings because of isolated or non-recurring events. Note 3. Revenue 2026 2025 $'000 $'000 Revenue from contracts with customers Integrated Solutions, Services and Product revenue 85,381 103,230 Other revenue Rent 149 156 Revenue 85,530 103,386
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 Note 3. Revenue (continued) 13 Disaggregation of revenue The disaggregation of revenue from contracts with clients is based on the location of the clients as follows: 2026 2025 $'000 $'000 Geographical regions Australia 46,024 41,668 United States 37,124 60,681 Asia 827 387 Other 1,406 494 85,381 103,230 Timing of revenue recognition Goods transferred at a point in time 63,487 85,550 Services transferred over time 21,894 17,680 85,381 103,230 Note 4. Cash and cash equivalents 2026 2025 $'000 $'000 Current assets Cash at bank 8,515 9,633 Cash on deposit 50 50 8,565 9,683 Note 5. Trade and other receivables 2026 2025 $'000 $'000 Current assets Trade receivables 11,843 15,058 Less: Allowance for expected credit losses - (141) 11,843 14,917 Receivable from joint venture 261 152 Less: Allowance for expected credit losses (59) (69) 202 83 12,045 15,000
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 14 Note 6. Inventories 2026 2025 $'000 $'000 Current assets Stock in transit 734 2,041 Stock on hand 5,189 5,376 5,923 7,417 Note 7. Property, plant and equipment 2026 2025 $'000 $'000 Non-current assets Office buildings and warehouses - at cost 2,841 3,026 Less: Accumulated depreciation (2,563) (2,091) 278 935 Plant and equipment - at cost 17,769 18,074 Less: Accumulated depreciation (10,706) (8,826) 7,063 9,248 Motor vehicles - at cost 1,949 2,032 Less: Accumulated depreciation (1,430) (1,139) 519 893 Office equipment - at cost 511 508 Less: Accumulated depreciation (442) (309) 69 199 7,929 11,275
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 Note 7. Property, plant and equipment (continued) 15 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Office buildings and warehouses Plant and equipment Motor vehicles Office equipment Total $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2024 1,685 8,426 1,131 272 11,514 Additions - 2,029 - 52 2,081 Disposals - (57) - - (57) Exchange differences 12 13 10 1 36 Transfer to inventory - (38) - - (38) Remeasurement 40 - - - 40 Recognition of right-of-use assets - 1,216 138 - 1,354 Depreciation expense (802) (2,341) (386) (126) (3,655) Balance at 30 June 2025 935 9,248 893 199 11,275 Additions - 560 - 7 567 Disposals - (283) (35) - (318) Exchange differences (17) (167) (21) (3) (208) Remeasurement 29 - - - 29 Recognition of right-of-use assets 91 111 74 - 276 Depreciation expense (760) (2,406) (392) (134) (3,692) Balance at 30 June 2026 278 7,063 519 69 7,929 Included in the above line items are right-of-use assets over the following: Office buildings and warehouses Plant and equipment Motor vehicles Total $'000 $'000 $'000 $'000 Balance at 1 July 2024 1,685 121 860 2,666 Recognition of right-of-use asset - 1,216 138 1,354 Exchange differences 12 3 10 25 Rent adjustments 40 - - 40 Depreciation expense (802) (152) (264) (1,218) Balance at 30 June 2025 935 1,188 744 2,867 Recognition of right-of-use asset 91 111 74 276 Exchange differences (17) (57) (21) (95) Disposals - - (23) (23) Rent adjustments 29 - - 29 Depreciation expense (760) (255) (271) (1,286) Balance at 30 June 2026 278 987 503 1,768
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 16 Note 8. Intangibles 2026 2025 $'000 $'000 Non-current assets Goodwill - at cost 20,587 20,995 Trademarks and intellectual property - at cost 3,780 3,768 Less: Accumulated amortisation (1,461) (1,270) Less: Impairment (1,923) - 396 2,498 Customer contracts - at cost 2,600 2,600 Less: Accumulated amortisation (1,678) (1,353) Less: Impairment (922) - - 1,247 20,983 24,740 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Goodwill Trademarks and intellectual property Customer contracts Total $'000 $'000 $'000 $'000 Balance at 1 July 2024 20,833 2,642 1,572 25,047 Additions - 40 - 40 Exchange differences 162 4 - 166 Amortisation expense - (188) (325) (513) Balance at 30 June 2025 20,995 2,498 1,247 24,740 Additions - 25 - 25 Exchange differences (408) (8) - (416) Impairment of assets (a) - (1,923) (922) (2,845) Amortisation expense - (196) (325) (521) Balance at 30 June 2026 20,587 396 - 20,983 (a) Impairment of assets During the year, the Group recognised an impairment expense of $2,845,000 against intangible assets arising from the 2021 acquisition of Haldon Industries. The impairment comprised the remaining carrying values of customer contracts ($922,000) and trademarks and intellectual property ($1,923,000), which relate to the Water Technologies CGU. The impairment assessment was undertaken in the context of the Group's strategic review completed during the year and announced to the market in June 2026. The review refined the Group's focus on its core Mining, Energy and Data Centre segments and highlighted that future value creation within the Water Technologies business is increasingly derived from the Group's current technologies and capabilities, rather than the acquired customer contracts, trademarks and intellectual property recognised as part of the Haldon Industries acquisition. Together with shifting customer mix and evolving technologies, this resulted in future economic benefits no longer being considered specifically attributable to the acquired customer contracts, trademarks and intellectual property.
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 Note 8. Intangibles (continued) 17 Annual impairment testing of goodwill indicated that the Water Technologies CGU continues to have a recoverable amount in excess of its carrying value and therefore no goodwill impairment was recognised as at 30 June 2026. Impairment testing for goodwill The recoverable amount of the Group's goodwill has been determined by a value-in-use calculation using a discounted cash flow model, based on a 1 year projection period approved by the Directors and extrapolated for a further 4 years (within the Group's 5-year plan) using variable rates, together with a terminal value. Goodwill is monitored by management at the following level: 2026 2025 $'000 $'000 Energy Services 7,531 7,939 Water Solutions - Process Chemistry 3,002 3,002 Water Solutions - Water Technologies 10,054 10,054 20,587 20,995 During the year, the Group revised the presentation of its operating segments. The segment previously reported as Chemical Services, which combined the Energy Services and Process Chemistry businesses, has been split. Energy Services now stands alone as a segment, while Process Chemistry has been integrated with Water Technologies to form the new Water Solutions segment. Key assumptions used for value-in-use calculations 2026 Growth rate(i) 2026 Discount rate (pre-tax) 2025 Growth rate(i) 2025 Discount rate (pre-tax) % % % % Energy Services 10.0 13.0 10.0 13.0 Water Solutions - Process Chemistry 10.0 13.0 10.0 13.0 Water Solutions - Water Technologies 10.0 13.0 8.0 14.0 (i) The weighted average revenue growth rate used to extrapolate cash flows beyond the budget or forecast period. Growth rate assumptions have been determined with reference to historical Group's experience and expectations of long- term operating conditions. The growth rates do not exceed long-term industry growth rates for the industry in which the business operates. Discount rate assumptions above reflect the Group’s estimate of the time value of money and specific risks to the relevant segments and the countries in which they operate. In determining appropriate discount rates, consideration has been given to the estimated Weighted Average Cost of Capital for the Group, adjusted for business specific risks to the CGU. Sensitivity to change in assumptions Management has assessed the sensitivity of the recoverable amounts of the Energy Services and Water Solutions CGUs to changes in the key assumptions used in the impairment assessment. Based on this analysis, no reasonably possible change in any key assumption would result in the carrying amount of either CGU exceeding its recoverable amount and, therefore, no material impairment would arise.
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 18 Note 9. Trade and other payables 2026 2025 $'000 $'000 Current liabilities Trade payables 9,310 12,984 Other payables and accruals 3,188 5,078 12,498 18,062 Note 10. Issued capital 2026 2025 2026 2025 Shares Shares $'000 $'000 Ordinary shares - fully paid 190,088,581 190,088,581 119,606 119,606 Movements in ordinary share capital Details Date Shares Issue price $'000 Balance 1 July 2024 189,853,077 119,489 Shares issued to Directors in lieu of fees (vesting quarterly) 13 December 2024 284,676 $0.495 141 Cancellation of shares issued to a Director 1 April 2025 (49,172) $0.495 (24) Balance 30 June 2025 190,088,581 119,606 Balance 30 June 2026 190,088,581 119,606 Note 11. Interests in subsidiaries and joint ventures The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries and joint ventures: Ownership interest Principal place of business / 2026 2025 Name Country of incorporation % % Subsidiaries Science Developments Pty Ltd Australia 100% 100% SciDev Water Services Pty Ltd Australia 100% 100% Science Developments (NSW) Pty Ltd Australia 100% 100% SciDev (NT Operations) Pty Ltd Australia 100% 100% Intec Copper Pty Ltd Australia 100% 100% Intec Envirometals Pty Ltd Australia 100% 100% SciDev International Holdings Pty Ltd Australia 100% 100% SciDev (US) LLC(1) United States 100% 100% SciDev Energy Services Inc(2) United States 100% 100% SciDev Ltd United Kingdom 100% 100% SciDev Canada Ltd Canada 100% 100% Joint ventures Nuoer SciDev JV Pte. Ltd. Singapore 50% 50%
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SciDev Limited Notes to the consolidated financial statements 30 June 2026 Note 11. Interests in subsidiaries and joint ventures (continued) 19 (1) SciDev (US) LLC is a wholly-owned subsidiary of SciDev International Holdings Pty Ltd. (2) SciDev Energy Services Inc is a wholly-owned subsidiary of SciDev (US) LLC. Note 12. Events after the reporting period No matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.